You would like to have enough money saved to receive a growing annuity for 25 years, growing at a rate of 4 percent per year, with the first payment of $60,000 occurring exactly one year after retirement. The interest rate is 12 percent. How much would you need to save in your retirement fund to achieve this goal?
You would like to have enough money saved to receive a growing annuity for 25 years, growing at a rate of 4 percent per year, with the first payment of $60,000 occurring exactly one year after retirement. The interest rate is 12 percent. How much would you need to save in your retirement fund to achieve this goal?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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